Pakistan and China are seeking to recast CPEC as an investment-and-industry project rather than merely an infrastructure corridor, but the shift will depend on whether pledges, private-sector interest and special economic zones can be converted into tangible investment. Federal Minister for Board of Investment Qaiser Ahmed Sheikh met Chinese Counsellor Yang Guangyuan at the Board of Investment to discuss ways of strengthening bilateral investment cooperation under CPEC Phase-II.
The talks focused on the future roadmap of the corridor, particularly the need to attract Chinese private-sector companies into manufacturing and industrial development. Both sides also reviewed progress on Special Economic Zones and discussed how these could be turned into working models of industrial growth.
The meeting reflected a broader change in the direction of CPEC. Its first phase delivered critical infrastructure, while the second is being presented as a platform for industrialisation, export-oriented production and economic growth through stronger investment collaboration.
That ambition has gained further momentum after Prime Minister Shehbaz Sharif's four-day visit to China, described in one account as a 'second renaissance' of CPEC. During high-level meetings with Chinese President Xi Jinping and Premier Li Qiang in Beijing, both sides reaffirmed support for advancing CPEC Phase 2.0 and accelerating economic cooperation.
The visit included discussions on industrial relocation, technological upgrading and investment agreements worth about $8.5 billion. Multiple agreements and memorandums of understanding were signed, covering political coordination, economic cooperation, industrial partnerships and diplomatic consultations.
A central feature of the renewed push is the movement from infrastructure-led development to a more diversified model. CPEC Phase 2.0 is being linked to artificial intelligence, renewable energy, advanced manufacturing, digitalisation, green technologies, quantum technologies and hybrid agriculture.
Pakistan and China also established a three-year cooperation framework between Pakistan and China's National Development and Reform Commission. The arrangement, aligned with Pakistan's URAAN Pakistan 5Es framework, covers macroeconomic planning, mining and industrial innovation, emerging technologies, human-resource development and youth skills.
The emphasis on private enterprise was also visible in Zhejiang Province, a major Chinese industrial and entrepreneurial centre. The prime minister's engagements there signalled Pakistan's wish to draw more Chinese private companies into manufacturing, technology and export-oriented sectors.
The Pakistan-China Business-to-Business Investment Conference in Hangzhou brought together more than 500 enterprises from both countries. It generated multiple MOUs and joint ventures in sectors including artificial intelligence, fintech, the digital economy, agriculture and energy storage.
Yet the official enthusiasm is accompanied by familiar obstacles. Yang Guangyuan noted that, although many delegations visit Pakistan, their conversion into concrete investment remains limited. He said addressing information gaps was essential for attracting Chinese investors.
The Chinese Counsellor also stressed that assurances made to investors must be fulfilled. He encouraged close coordination with the Chinese Embassy, saying projects endorsed by the Embassy carry greater reliability and confidence for Chinese companies.
Both sides agreed on closer institutional collaboration. The Board of Investment will share project details with the Embassy in advance, while the Embassy will provide a curated list of potential Chinese investors. The aim is to improve matchmaking and investment outcomes. Security was also identified as a central concern. Additional Secretary Erfa Iqbal said the Board of Investment could help coordinate with Pakistani security institutions, including the Ministry of Interior, to improve arrangements for Chinese investors and officials.
The need to build success stories in Special Economic Zones was also discussed. Such examples, officials argued, could strengthen investor confidence and demonstrate Pakistan's industrial potential under the new phase of CPEC.
The scope of CPEC 2.0 is not confined to conventional industry. Several agreements and proposals point to a larger technological and environmental agenda. These include solar-panel manufacturing, agricultural technology, hydrogen energy and special economic zones, including a proposed 6,000-acre industrial zone in Karachi.
A joint venture between China's Haolu Engineering and Technology Company Limited and Fauji Fertilizer Company aims to improve fertiliser production and agricultural productivity in Pakistan. Another partnership between Habib Rafiq Limited and Beijing Global Hydrogen Industries highlights the focus on clean-energy cooperation.
Agriculture is also part of the emerging framework. New protocols on exports such as maize, dried fruits and nuts, supported by sanitary and phytosanitary standards, are expected to expand Pakistan's agricultural trade with China. Balochistan has been presented as a possible centre of the green dimension of CPEC Phase 2.0. The provincial government launched the Green Balochistan Initiative in 2024 with an allocation of Rs10 billion, as the province faces rising temperatures, water scarcity and frequent heatwaves.
The Green Corridor is described as a key part of CPEC 2.0, linked to environmental protection and Sustainable Development Goals. Balochistan's solar potential is repeatedly highlighted, including its large uncultivated land area, high irradiation levels and roughly 300 sunny days in many areas.
China's role in green technology is central to this argument. It controls large shares of rare-earth processing, permanent-magnet production, solar-panel manufacturing and electric-vehicle battery production. The articles argue that Chinese expertise could help Balochistan develop renewable energy, local manufacturing of batteries, panels and inverters, and climate-smart agriculture.
In Gwadar, 5,000 households have received solar systems with Chinese support. In Balochistan, 27,000 agricultural tube wells have been converted to solar systems, while more than 847 farmers obtained Rs3.2 billion in interest-free loans under the Green Pakistan Initiative to cultivate nearly 35,609 acres.
The proposed green agenda also includes sprinkler irrigation, drip irrigation, micro-irrigation, fertigation, soil testing, biofertilizers and drone-based smart farming. These measures are presented as ways to preserve water, raise productivity and reduce chemical dependence. The broader challenge is inclusion. One article argues that CPEC 2.0 must produce not only industrial and technological gains but also jobs, poverty reduction, better healthcare, education, clean drinking water and community empowerment.
Proposals include SME corridors near CPEC-linked industrial zones, artificial-intelligence and digitalisation corridors in universities, technical and vocational education corridors, and structured technology-transfer mechanisms.
For Pakistan, the promise is considerable: industrial relocation, private investment, green technology and export-oriented production. But the test will be practical rather than rhetorical. CPEC's next phase will be judged by whether meetings, memorandums and frameworks can become factories, jobs and credible investment on the ground.